20140117Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
LEGAL
WORIUNG FILE
FROM:TERRI CARLOCK
DATE:JANUARY 16,2014
RE:INTERMOUNTAIN GAS COMPANY’S REQUEST TO ACKNOWLEDGE
UPDATED AGREEMENTS FOR DEBT;CASE NO.INT-G-13-07.
On December 11,2013,Intermountain Gas Company (Intermountain,Company)filed an
Application requesting acknowledgment of amendments to the outstanding 1998 Senior
Debentures due in 2018 as approved in Order No.27689.The debt is held by Teachers
Insurance and Annuity Association of American (TIIA).
The amendments allow for and accommodate changes to the limitation on indebtedness
for money borrowed,acknowledge the purchase of Intermountain Gas Company by MDU
Resources Group,Inc.(MDUR)and permit Intermountain to file consolidated income tax returns
with MDUR or its subsidiaries.TIAA wishes to amend the 1998 Agreement to conform to the
same terms,conditions and reporting standards included with the 2013 Note Purchase
Agreement approved in Case No.INT-G-1 3-06,Order No.32896.
STAFF RECOMMENDATION
Staff recommends acknowledgement of these amendments along with the embedded
terms and conditions to the outstanding 1998 Senior Debentures due in 2018.These changes
better match the needs of Intermountain and current financial market conditions.
DECISION MEMORANDUM 1 JANUARY 16,2014
COMMISSION DECISION
Does the Commission wish to acknowledge these amendments along with the embedded
terms and conditions for the outstanding 1998 Senior Debentures due in 2018?
ci
Tern Carlock
TC\nlgI3.07 dcbl arccments OM 1.09.13
DECISION MEMORANDUM 2 JANUARY 16,2014